Apple's Chart Appears Troubled
Recent weeks have seen a rotation away from Big Tech in favor of energy and financials. Apple hasn't been immune from the process, as this chart shows.
First, notice how AAPL made a double top around $138 in early September and late December. Those peaks were suspect because they occurred during holidays. They were also near the opens, followed by solid red candles. Highs were sold.
Second, AAPL had a false breakout immediately before earnings. Then good news got sold when results crushed estimates. That kind of price action is classic distribution: big investors reducing exposure regardless of facts.
Third, where did the smart-phone giant peak after the failed breakout? The exact same $138 level from the double top. This could be a significant level well into the future.
Finally, AAPL broke an upward-sloping trend line that began in November. It's also under the 50-day simple moving average (SMA).
AAPL has a lot of positives overall, but investors are currently favoring different kinds of stocks for the economic recovery and reopening. It might need a couple of quarters to regain its mojo.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
First, notice how AAPL made a double top around $138 in early September and late December. Those peaks were suspect because they occurred during holidays. They were also near the opens, followed by solid red candles. Highs were sold.
Second, AAPL had a false breakout immediately before earnings. Then good news got sold when results crushed estimates. That kind of price action is classic distribution: big investors reducing exposure regardless of facts.
Third, where did the smart-phone giant peak after the failed breakout? The exact same $138 level from the double top. This could be a significant level well into the future.
Finally, AAPL broke an upward-sloping trend line that began in November. It's also under the 50-day simple moving average (SMA).
AAPL has a lot of positives overall, but investors are currently favoring different kinds of stocks for the economic recovery and reopening. It might need a couple of quarters to regain its mojo.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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